innovative welding technology’s impact on the productivity ... · shielded-metal-arc welding ......
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Special Issue: Development and Sustainability in Africa – Part 2
International Journal of Development and Sustainability
Online ISSN: 2168-8662 – www.isdsnet.com/ijds
Volume 2 Number 2 (2013): Pages 747-765
ISDS Article ID: IJDS 13012505
Innovative welding technology’s impact on the productivity of small and medium enterprises in Bulawayo, Zimbabwe
Albert Makore *
Faculty of Commerce, Department of Marketing Great Zimbabwe University, Box 1235 Masvingo, Zimbabwe
Abstract
This research paper focuses on the evaluation of innovative welding technology’s impact on the productivity of Small
and Medium Enterprises (SMEs). The paper examines business operational sector and size, technology currently in
use, customer/supplier relationships, and technical knowledge levels, skills in use on the shop floor level, training,
safety standards implementation and quality control aspects in the SMEs. The companies are evaluated on their use
of Oxygen and Acetylene gas welding, Manual Metal Arc Welding (MMA), Metal Inert Gas Welding (MIG) and
Tungsten Inert Gas Welding (TIG) for maintenance and productive purposes. Both exploratory and descriptive
research designs are applied in this study. A structured survey instrument was administered to seventy five (75)
SMEs selected based the researcher’s judgement of companies’ industrial classification. The findings are that
technological innovativeness has both positive and negative effects on the commercial success of companies,
however management in SMEs do not leverage on the use of innovative welding technology. The findings on the non-
significance of the influence of technological innovativeness of welding processes can be as a result internal
managerial controllable factors and outward uncontrollable environmental factors.
Keywords: Small and Medium Enterprises (SMEs), Standard Industrial Classification Code. (SIC), Oxygen and
Acetylene gas welding, Manual Metal Arc Welding (MMA), Metal Inert Gas Welding. (MIG), Tungsten Inert Gas
Welding. (TIG)
Copyright © 2012 by the Author(s) – Published by ISDS LLC, Japan
International Society for Development and Sustainability (ISDS)
Cite this paper as: Makore, A. (2013), “Innovative welding technology’s impact on the productivity
of small and medium enterprises in Bulawayo, Zimbabwe”, International Journal of Development and
Sustainability, Vol. 2 No. 2, pp. 747-765.
* Corresponding author. E-mail address: [email protected]
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748 ISDS www.isdsnet.com
1. Introduction
The development of the welding process is linked to the progression of manufacturing processes in marine
engineering and the ancient methods of metal working. Welding practicability became a reality due to the
changes in metallurgy, the development of electricity and the industrial gases (Mutch, 1998). The fusion
welding of metals is the joining process of metals using gas or electric arc and these technics were developed
towards the end of the nineteenth century and had very different trajectories of adoption and diffusion. Gas
welding was developed from the discovery of techniques for making oxygen and then acetylene and
combination of these two enabled the development of cutting and welding technology.
One of the factors that hampered the use and development of electric arc welding was the low penetration
of electricity into many workplaces and many factories were slow to adapt the new production techniques.
The use of these new production techniques to repair warships and the construction of an all welded steel
structure for a factory served as precursors of the shift towards the use of welding as a manufacturing rather
than a repair technology. Drastic changes were ushered with the end of the Second World War and this
brought about major expansion of new industries replacing antiquated processes (Mutch, 1998).
Technological innovation use is known for the fact that it produces better products at lower costs and
technological innovativeness produces greater benefits downstream for both existing and new customers
(Utterback, 1994). Welding is a manufacturing process used in a large number of industrial sectors and it is
estimated that in Europe more than two million jobs are related with welding technology. Rosado et al. (2008,
p.1) have pointed out that “Welding has an economic impact as it is used in the production sector which
generates an added value of approximately 1600 billion euros, per year, in Europe. It is estimated that
approximately 5% of this value, equating to 8 billion euros is related with joining technology”.
2. Joining processes
Welding can be perceived as an obvious industrial process by the laymen, but in actual fact it is a complex
process with many parameters determining the end product. Shipbuilding is one of the first industries to
adopt the welding technology (Mutch 1998); “the welding costs play a crucial role in decision making. While
many variables affect this cost, including equipment, consumables, and energy, the most significant one is
labour, which can represent 80 per cent of the overall manufacturing cost” (Dinovitzer, 2010).
2.1. Shielded-Metal-Arc Welding (SMAW)
According to Miller Electric Manufacturing Company (2012, p.5)
“Shielded Metal Arc Welding (SMAW) or Stick welding is a process which melts and joins
metals by heating them with an arc between a coated metal electrode and the work piece.
The electrode outer coating, called flux, assists in creating the arc and provides the
shielding gas and slag covering to protect the weld from contamination. AWS (American
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Welding Society) A5 specifications set standards for electrodes for SMAW of carbon,
stainless, and low-alloy steels; aluminium, copper, and nickel and their alloys; and weld-
surfacing. Designations for covered electrodes carry the prefix ‘E’. Packaged to AWS
specifications, electrodes come in boxes, cans, or other containers, labelled with their AWS
specification and trade name, quality- control (heat or lot) number, supplier name,
diameter and length, and weight of contents. Specifications require that every electrode be
marked for identification near the grip end with its numeric designation”.
To select a welding electrode for the SMAW process factors such mechanical properties of the base
metal ,metallurgical composition of the base metal, welding position, welding current in relation to the
electrode size, joint design and material thickness should be considered in sequential order of importance.
2.2. Gas-Metal-Arc Welding (GMAW) MIG
Miller Electric Manufacturing Company (2012) also defines Gas Metal Arc Welding (GMAW) MIG is a welding
process which joins metals by heating the metals to their melting point with an electric arc. The welding
process is performed when a solid continuous consumable electrode is fed through a wire feeder either using
the push system or the push- pull system and an arc is created between the continuous consumable electrode
and the metal being welded. A shielding gas is used to protect weld pool from contamination and the
shielding gas used also contribute to the welding process in terms of penetration, bead geometry and weld
appearance.
GMAW can be done in three different ways, such as the semiautomatic process where the welding process
is controlled by hand ,machine welding where a manipulator is used to carry out the welding process with
continuous monitoring from the operator and the automatic welding process which is normally computer
controlled.
Flux cored welding wires consist of a steel tube surrounding a core of fluxing ingredients which will
provide alloying elements at times or shielding in addition to other shielding gases such as CO2 or Argon –CO2
mixtures. Depending on the application the flux cored wires can be self-shielding or a shielding gas has to be
used .Some flux -cored wires, form a slag that completely covers the weld-bead face and some metal cored
wires produce very little slag.
The primary function of the shielding gases such Argon is to shielded the weld from the surrounding
atmosphere; however Helium and Argon mixture maybe used to provide deep penetration and faster
deposition rates (Norrish, 2006). One of the weld defects which exhibits weld porosity and low tensile
strength can be caused by not protecting the molten weld pool from the atmosphere during the welding
process.
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2.3. Gas-Tungsten-Arc Welding (GTAW, TIG)
Miller Electric Manufacturing Company (2012, p.5) defines “Gas Tungsten Arc Welding (GTAW) also known
as Tungsten Inert Gas (TIG) welding as a process that produces an electric arc between a non-consumable
tungsten electrode and the part to be welded. The heat affected zone, the molten metal and the tungsten
electrode are shielded from atmospheric contamination by a blanket of non-reactive inert gas such as Argon
or Helium”. GTAW process joins with or without filler metal and the filler rods can be carbon steel rods,
stainless steel rods, aluminium filler rods and additional requirements can be stated in the welding
procedure specifications. The tungsten electrodes used in the TIG welding process are supplied with various
specifications and some have thorium which provides higher current carrying capacity than pure tungsten
and resulting in less contamination of the weld pool, better arc starting and stability.
2.4. Oxygen and Acetylene welding
Gas welding and brazing processes are carried out through the use oxygen and fuel gases such as acetylene
or Liquefied Petroleum Gas (LPG). In order to ensure safety and proper handling of compressed oxygen, high
pressure cylinders are used to store and transport the gas. Acetylene is also stored and transported in
cylinders containing a porous mass, then filled with acetone which absorbs the acetylene for stability.
Various types of gas equipment such as high pressure regulators fitted with gauges to show the contents and
working line pressure, flashback arrestors, high pressure hoses, check valves are used to enable the welding
and brazing processes to be carried out safely (Afrox, 2013).
3. Literature review
In this research paper, the term diffusion is taken as adoption of a product, service or process perceived to be
new or innovative and the analogy of a biological organism’s life can be applied (Vernon, 1966 in Gueso et al.,
2007). Tidd et al. (2001, p. 38) in Smith et al. (2008) defines “Innovation as a process of turning opportunity
into new ideas and of putting these into widely used practice”. Damanpour (2010) notes that innovation can
be defined as an organisational management process which can result in an improved status or dynamic
change. Competitiveness can be achieved by cost reduction and pricing competitively and these have strong
links with technological innovations.
Kafouros et al. (2008) asserts that one factor which is considered to be important in terms of a company’s
future performance is innovative technology. Long-term viability and the application of certain core
competencies due to investment in innovative technology will result in strategic advantage (Tellis et al.,
2009; Roder et al., 2000). Technological innovativeness, which is the degree of newness of technologies
embodied in a new product is assumed to be a driver of new product success because new technologies
promise higher technical performance, and offer additional functionality and increased benefits to customers
(Garcia and Calantone, 2002; Hill and Rothaermel, 2003; Zhou et al., 2005).
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Technology affects the way companies do business on the international market on various levels (Sitkin
and Bowen, 2010).As noted innovation involves many factors and the company’s manufacturing engineering
teams must constantly coordinate and facilitate the integration of imported technology in order to develop,
adopt, implement and take advantage of new technologies (Singh et al., 2005).
Small to Medium sized enterprises are defined as enterprises which employ fewer than 250 employees,
which have an annual turnover not exceeding 50 million euros (European Commision 2003).
3.1. Drivers of innovative technology adoption
Economic growth in Least Developed Countries (LDCs) is currently being driven by SMEs whose funding is
largely linked to national governments policy directives. Innovative technology can be viewed as an asset or
commodity that can be sold or purchased and a company can achieve growth. Romijn (2001) notes that there
high risk in innovative technology due possible leakages to competitors, secondly uncertainty and thirdly
there should be economies of scale as new knowledge becomes useful only in large numbers.
It is also critical to acknowledge that family firms have been noted as disadvantaged when it comes to R
and D investment due to either their focus on value preservation or lack of resources (Carney and Gedajlovic,
2003). Innovation and entrepreurship have a major contribution towards a company’s long term profitability
and stability (Hadjimanolis, 2000; Verhees and Menleuberg, 2004). In order to stay ahead of competition,
companies need to focus on continuous improvement and pursue the differentiation strategy (Jaselskis et al.,
2011). Innovative capacity allows organizations to differentiate themselves from the competition and to
create a competitive advantage.
Management thinking and support are essential to the adoption of technological innovation and there is
evidence to that effect in the information technology systems adoption (Daniel and Meyers, 2011).
3.2. Market orientation
Jaworski and Kohli (1993) and Narver and Slater (1990) note that several research studies acknowledge the
link between market oriented behaviour and company performance. The thrust or emphasis an organisation
focuses on in bringing about change can be seen as innovativeness in the market (Carter and Gray, 2007).
Management preferences or bias also affects innovation adoption (Sandstrom et al., 2009).
SMEs commonly face a number of environmental factors which can be either controllable or
uncontrollable such as legal issues, interest rates fluctuations, supply chain stability, competition, skills and
funding. Industry standards and requirements have an impact on adoption of technological innovations and
at times this can be imposed on SMEs (Iacovou et al., 1995 as cited in Chong, 2001). Gatignon and Robertson
(1985) assert that competitive rivalry does encourage innovative behaviour. The implication of not pursuing
technological innovation can result in the firm being perceived non-competitive and poorly positioned (Lee,
1999). The decision to move towards innovative technology can be a result of industry pressure to conform
(Robertson and Gatingnon, 1986). Previous research studies have shown that innovative technology
adoption process can result from epidemic pressures (Bertschek et al., 2006; Canepa and Stoneman, 2004).
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The epidemic model (Ramsey et al., 2008) derives its basis on information and technology spillover
acknowledgment by non-users from users. The tendency to adopt innovative technology can be attributed to
a number of factors such as the number or levels of adoption and industry specific issues. Some firms or
certain enterprises have a low take-up of innovative technology while other firms can easily adopt new
technology such as the banking industry. As observed, innovative technology will lead to a multiplicity of
results which will be industry specific (Upachalanan, 2000).
3.3. Institutional support
For technological advancement to grow, active government support is critical for the firm which acquires the
innovative technology. Importing machinery only without the requisite technical skills and managerial skills
and linkages with other firms and institutions, might result in performance deficiency in the company’s
overall goals. Company specific issues such new skills and technical knowledge often gets in the way of
maximum development of imported technology.
One of the key aspects noted is that industry specific issues pertaining to learning needs may require
lesser effort such as in apparel manufacturing compared to advanced electronics and mechanical engineering
(Lall and Pietrobelllo, 2003). Constraints and restrictions of learning within organisations can be attributed
to resistance to change, risk aversion, knowledge deficiency and inability to undertake learning process (Lall
and Pietrobelllo, 2003). Romijn (2001) addresses the needed for technological support to industry citing
arguments that investment in technological renovation is subject to market widespread failure. Emphasis is
also placed on the fact that without curative action, private companies are not obliged to fully invest in
technological effort in relation to societal development (Stoneman, 1995 and Dasgupta, 1987; in Romijn,
2001). Proprietary rights risk, uncertainty risk can be viewed as a threat to the incentive to take first mover
advantage as new knowledge often becomes substantially useful only in large scale.
WAI SUM SIU (2005) acknowledges the fact that some governments, such as the Hong Kong government
has a non- interventionist policy that results in balance of self-regulation and the parent government plays a
critical role of infrastructure development and enforcement of legislation. Collaboration has major
advantages, as this enables a firm to obtain the necessary skills and resources from a strategic partner. Firms
can also spread risk through the reduction of asset commitment and this can translate to organisational
flexibility. Schilling (2010, p.210) also noted that “markets characterised with rapid technological change,
need innovation as the primary driver of competition”.
Technological challenges of small producers are attributed to lack of appropriate means of production in
the form of machinery and equipment (Sethuraman, 1977; Harper, 1984). The benefits of technology
intensive manufacturing are that process innovations stimulate demand for technology based products
thereby quickening the pace of production, employment and exports and entry barriers to competitors are
high compared to low-technology activities (Lall and Pietrobello, 2003).
Hamel and Prahalad (1994) define core competencies as harmonised combination of multiple resources
and skills that distinguish a firm from its competitors. The term capabilities is used to distinguish elemental
skills such as logistics management as noted, they the two terms, core competencies and capabilities can be
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used interchangeably. In a research study conducted, it was noted that Zimbabwean firms perform slightly
better than Kenyan and Tanzanian firms in the clothing and engineering sectors in terms of technological
capabilities but ratings are less than international standards and in another World Bank study conducted
measuring technical efficiency not capabilities the following values were recorded with similarities with the
above research: Zimbabwe (0.52), Kenya (0.41) and Ghana (0.33) (Biggs et al., 1995).
4. Statement of the problem
The study will analyse the adoption state of innovative welding technology in selected SMEs and evaluate
capabilities which enable firms to innovate. The research seeks to capture business operational sector and
size, technology currently in use, institutional (customer/supplier) relationships, technical knowledge, and
skills in use, training, safety standards implementation and quality control awareness. The companies are
evaluated on their use of Oxygen and Acetylene gas welding, Manual Metal Arc Welding (MMA), Metal Inert
Gas Welding (MIG) and Tungsten Inert Gas Welding (TIG) for maintenance and productive purposes.
4.1. Research objectives
The objectives of this paper are to explore the impact of welding technology innovation on the productivity of
Small and Medium Enterprises (SMEs). Both exploratory and descriptive research designs are applied to this
study to gain understanding of developments in downstream supporting industry for transformation and
value addition to the Agriculture and mining sectors.
Three research questions are proposed to satisfy the objectives outlined above.
RQ1. What is the current state of technology adoption in SMEs in Bulawayo?
RQ2.Which are the internal factors or external factors that influence choice of technology?
RQ3. Do SMEs use institutional support?
There is evidence which supports that investment in innovation can lead to competitive advantage
(Roberts, 1999). In this paper we hypothesize that adoption of innovative technology does not lead to
competitive advantage.
Hypothesis 1: Adoption of innovative technology does not lead to competitive advantage in SMEs.
Hypothesis 2: Firm innovation strategies are not internally driven.
Hypothesis 3: Institutional support is not critical for growth in SMEs pursuit for innovative technology.
Figure 1 summarizes our hypotheses and the relationships between internal capabilities and performance.
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Figure 1. Capabilities framework
5. Research methodology
The research is confined to small enterprises with 10 to 79 employees and medium enterprises with fewer
the 250 employees as defined by the European Commission of 1996. In essence it also important to note that
SMEs contribution to the development of the economy is quite prevalent in developed nations (Ramsey et al.,
2008). A quantitative methodology is used for this exploratory research design which seeks to gain
understanding of developments in downstream supporting industry for transformation and value addition to
the Agriculture and mining sectors.
The sample included both manufacturing and service industries and these were selected using the SIC
four digit codes. The study concentrated on the mechanical engineering, automotive, electrical, clothing
industry and civil construction industry. For practical purposes a judgement sample 75 SMEs firms was
chosen and data interpretations should take note of those shortcomings. To critically evaluate the
appropriate constructs, they were labelled as follows in the measuring instrument: nature of business, staff
development, technology awareness and the firm size is also included as a driver (Gray et al., 1999).
The questionnaire also included other demographic/firm characteristic items which were measured using
structured responses. To collect data, questionnaires were taken to the selected companies and they were
completed in the presence of the researcher. An opportunity to observe welding plant equipment in use and
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the various types of brand names of welding equipment was carried out during the plant tour. The final total
usable responses were 43 per cent (32 questionnaires). Due to the strategic nature of the questions, senior
managers were mainly targeted such as Managing Directors, Manufacturing manager /director, Engineering
Managers and the owners of emerging small companies or entrepreneurs.
6. Results
6.1. Current state of innovative welding technology adoption (RQ.1)
The data collected was coded and analysed using SPSS (version 16).In relation to innovative welding
technology adoption 46% of the companies who responded are analysed in Table 1.
Table 1. Distribution of sample according to industrial classification
Frequency Percent Valid
Percent
Cumulative
Percent
Valid
Mining equipment
fabrication 8 25.0 25.0 25.0
Agricultural equipment
manufacturing 1 3.1 3.1 28.1
General fabrication 11 34.4 34.4 62.5
Electrical 1 3.1 3.1 65.6
Transport 4 12.5 12.5 78.1
Pharmaceutical 1 3.1 3.1 81.2
Civil construction 4 12.5 12.5 93.8
Food processing 2 6.2 6.2 100.0
Total 32 100.0 100.0
25% of the respondents are in mining equipment fabrication, 34% in general fabrication 12.5% in
transport and also 12.5% in construction industry and 6.2% in food processing.
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Table 2 shows that 34.4% of SMEs use oxygen and acetylene gas welding and Manual Metal Arc Welding
for fabrication and maintenance of equipment. The most widely used processes are the oxygen and acetylene
gas welding, Manual Metal Arc Welding and Gas Metal Arc Welding (MIG) with 47% of the respondents in
this category. Also noted is the fact that,18.8% of the SMEs use all the processes stated in the research
instrument. 32% of the respondents have 20-39 employees and 28% have 10-19 employees.
Table 2. Distribution of sample according to innovative welding processes being used
Frequency Percent Valid
Percent
Cumulative
Percent
Valid oxy/acetylene gas, MMAW 11 34.4 34.4 34.4
oxygen/acetylene gas welding,
MAW,GMAW(MIG) 15 46.9 46.9 81.2
oxy/acetylene, MMAW,
GMAW(MIG),GTAW(TIG) 6 18.8 18.8 100.0
Total 32 100.0 100.0
6.2. Internal factors or external factors that influence choice of technology (RQ2)
Table 3. Technical support for welding technology
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Very ease 3 9.4 9.4 9.4
Less ease 9 28.1 28.1 37.5
Neither ease or difficult 1 3.1 3.1 40.6
Neither ease or difficult 4 12.5 12.5 53.1
Difficult 7 21.9 21.9 75.0
More difficult 7 21.9 21.9 96.9
Very difficult 1 3.1 3.1 100.0
Total 32 100.0 100.0
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To assess the provision of support for the various innovative welding processes being used by the various
companies the respondents indicated the level of easiness or difficulty on a modified scale. 37% of the
respondents indicated that they can easily get support from the companies who sell the innovative welding
equipment.
Table 4. Evaluation of technical skills in-house
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Yes available in
house 31 96.9 96.9 96.9
No 1 3.1 3.1 100.0
Total 32 100.0 100.0
The welding costs inherently constitute approximately 80% of the welding costs and 97% of the
companies utilise in-house technical skills. 28% of the responding companies are involved in the
development of critical skills which act as an enabler in the use of innovative welding technology and they do
this through apprentice training programmes.
Table 5. Total quality management issues
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Safety awareness exists
in the organization 11 34.4 34.4 34.4
No safety awareness 12 37.5 37.5 71.9
ISO certified 3 9.4 9.4 81.2
Not ISO certified 1 3.1 3.1 84.4
Other 5 15.6 15.6 100.0
Total 32 100.0 100.0
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Total quality management is also a key driver for interchangeability of parts and variability of component
parts results in non-conformance to manufacturing standards leading to higher costs. In Table 5, 35% of the
respondents have safety programmes running within their organisations and only 9% ISO certified. 15.6% of
SMEs who fall under the “other” category revealed that they institute the mandatory safety standards
through the provision of protective clothing and the do not run any recognised quality programmes within
their works.
6.3. SMEs use of institutional support (RQ3)
Table 6. Evaluation on the engagement of partners for assistance
Frequency Percent Valid
Percent
Cumulative
Percent
Valid high collaboration with
technical partners 7 21.9 21.9 21.9
organization does not
use technical partners 25 78.1 78.1 100.0
Total 32 100.0 100.0
Results for engagement of partners in Table 6 show that 22% of the users of innovative welding
technology collaborate with technical partners for assistance to enhance their operational productivity and
78% do not use technical partners.
7. Hypotheses testing
The hypotheses which our study sought to test are as follows:
Hypothesis 1: Adoption of innovative technology does not lead to competitive advantage in SMEs
Hypothesis 2: Firm innovation strategies are not internally driven
Hypothesis 3: Institutional support is not critical for growth in SMEs pursuit for innovative technology
We use a significance level (α) of 0.05 for all our analyses. Any p –value that is less than this significance
level indicates that the variables are probably correlated in the population from which our sample is drawn.
Fisher (2010, p.404) indicates that “The value of the Pearson Chi-square is an aggregate measure based on
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the differences between the count and expected count for cells and the larger the difference between them,
the bigger will be the value of chi-square and more evidence there is for association between variables”.
Hypothesis 1: Adoption of innovative technology does not lead to
competitive advantage in SMEs
Table 7. Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 14.489a 14 .414
Likelihood Ratio 18.248 14 .196
Linear-by-Linear Association 6.196 1 .013
N of Valid Cases 32
a. 23 cells (95.8%) have expected count less than 5. The minimum expected count is .19
Table 8. Symmetric Measures
Value Asymp. Std. Errora Approx. Tb Approx. Sig.
Interval by Interval Pearson's R -.447 .126 -2.738 .010c
Ordinal by Ordinal Spearman Correlation -.457 .132 -2.817 .008c
N of Valid Cases 32
a. Not assuming the null hypothesis, b. Using the asymptotic standard error assuming the null hypothesis, c. Based on normal approximation
The correlation between industrial classification and innovative welding processes is negative –o.447 and
this correlation are in the low to moderate range and the results indicate that the two variables are
independent. An assumption cannot be made here, pertaining to the fact that the type of industry has a
relationship with the type if innovative welding technology they will adopt, hence as noted, competitive
pressure that firms face within their particular industry has influence on the company’s decision to adopt
innovative technology (Robertson and Gatignon, 1986; Iacovou et al., 1995).
Hypothesis 2: Firm innovation strategies are not internally driven
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7.1. Innovative welding processes and technical skills
Table 9. Symmetric Measures
Value Asymp. Std. Errora Approx. Tb Approx. Sig.
Interval by Interval Pearson's R .039 .038 .216 .830c
Ordinal by Ordinal Spearman Correlation .053 .050 .289 .774c
N of Valid Cases 32
a. Not assuming the null hypothesis, b. Using the asymptotic standard error assuming the null hypothesis, c. Based on normal approximation
The results indicate that the adoption of innovative technology is more externally driven than internally
driven which also concurs with previous research studies that have shown that innovative technology
adoption process can result from epidemic pressures (Bertschek et al., 2006; Canepa and Stoneman, 2004).
Hypothesis 3: Institutional support is not critical for growth in SMEs
pursuit for innovative technology
7.2. Industrial classification and partners for assistance
The correlation between Industrial classification and partners for assistance is 0.359 with approximate
significance of 0.044. The correlation shows that 36% of SMEs in various industries use outside partners for
assistance and support. For an economy with GDP growth rates of 4.4% in 2012, and 5% in 2013 estimates
(National Budget Statement, 2013), the government support is relatively important and there is need to grow
the sector by offering more support. This is supported by Romijn (2001) who addresses the needed for
technological support to industry citing arguments that investment in technological upgrading is necessary
due to market widespread failure. Emphasis is also placed on the fact that without curative action, private
companies are not obliged to fully invest in technological effort in relation to societal development
(Stoneman, 1995 and Dasgupta, 1987; in Romijn, 2001).
Table 10. Symmetric Measures
Value Asymp. Std. Errora Approx. Tb Approx. Sig.
Interval by Interval Pearson's R .359 .124 2.107 .044c
Ordinal by Ordinal Spearman Correlation .371 .145 2.191 .036c
N of Valid Cases 32
a. Not assuming the null hypothesis, b. Using the asymptotic standard error assuming the null hypothesis
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8. Discussion
The findings on the non-significance of the influence of technological innovativeness can be as a result
internal organisational factors and external environmental factors such as legislation (Tatikonda and
Rosenthal, 2000). Technological innovativeness can positively and also negatively affect the profitability of
an organisation, but one other key factor which has been noted is its ability to increase customer value (Kock
et al., 2011).
The research has shown that management in SMEs do not leverage on the use of innovative welding
technology unless it’s already widely used in various industries. The diffusion rate is basically governed by
industry dynamics controlled by industry standards such as ISO9000 standards and ISO 14000 standards.
With a mean (5.84) standard deviation (0.723), most industries use oxygen and acetylene gas welding,
Manual Metal Arc Welding and Gas Metal Arc Welding (MIG) processes for manufacturing and maintenance
purposes. For technical support, the mean (4.823) and standard deviation (2.02778) most companies neither,
find it easy to or difficult to get technical support for the welding processes they are currently using.
Due to complex requirements associated with the use of innovative welding technology, companies
develop and use in-house skills as indicated by mean (3.09) and standard deviation of (1.376). Innovative
technology contributes towards customer benefits through quality management systems which also look at
manufacturing processes, however innovative welding technology does dos not impact performance.
9. Limitations, future directions and conclusions
This research study has several implications for future research. The future research has to focus on both
cross-sectional studies and longitudinal studies to gather relevant data on the impact of innovative welding
technology. The issue about non-significant impact of innovative welding technology on performance as
noted by previous studies (Tatikonda and Rosenthal, 2000) needs further investigations. The effects of
change brought about by innovative technology seem to have benefits if they are broadly diffused as
technical aspects are generally guided by standards.
The limitations of this research are mainly the methods used to collect data, perharps in future a
longitudinal study will be ideal and there is also need to focus on the final product produced by the
innovative welding technology.
9.1. Management implications
The strategic nature of the decision to invest in innovative welding technology rests on management. Highly
innovative welding technologies can have a long term impact on the firm growth strategies.
International Journal of Development and Sustainability Vol.2 No.2 (2013): 747-765
762 ISDS www.isdsnet.com
Acknowledgements
I wish to thank all the Managing Directors, Technical Directors and Managers who assisted in compilation of
this research study.
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